Actions Required for the Reform of Ultra-Poor
1. Public assistance: Systems of universal social protection is required. Particularly important are basic safety nets like health insurance. To reach the extremely poor, they must be expanded and improved gradually. People can be permanently lifted out of poverty by providing basic protection along with proactive efforts.
2. Inclusion: Action must be taken to change discriminatory societal norms where the poorest members of society are subjected to prejudice on the basis of ethnic identity or other traits. It is also necessary to implement programs that enable women to engage more fully in social and political life.
3. Sustainable growth of the economy: In order for disadvantaged people to contribute to economic growth and benefit from it, growth policies must be inclusive. Rural and agricultural development must be prioritized, with a particular focus on smallholder farms, in many nations with high rates of ultra-poverty. Those who labor in the informal sector may have better chances after completing vocational training. Additionally, it could make the transfer to a professional job easier.
4. Health and Education: The very poor, especially kids and women, need access to a reasonable level of healthcare and education. Scholarships, voucher programs, and solidarity grants are tools for improving things. Minority ethnic or religious cultures must be taken into account. Remote locations can be reached with the help of contemporary information and communication technology.
5. Intense hands-on instruction: Training is provided to participants on how to use their new assets. A distinctive aspect of the strategy is weekly visits from program staff who provide coaching or “hand-holding” to help participants deal with difficulties and uncertainty.
Ultra Poverty in India
The inability to provide for even the most basic needs is known as ultra-poverty. Those who are extremely poor frequently lack education, have few or no assets, and are in terrible physical and mental condition. According to The World Bank Poverty, between 9.1% and 9.4% of the world’s population was predicted to be living in extreme poverty in 2020. The term “Ultra-Poor” refers to people who spend 80% of their income on food but fall short of 80% of their daily calorie requirements. There are numerous notable distinctions between the ultra-poor and the poor. The households in ultra-poverty have little or no assets, especially those of a non-durable kind, have few hopes for a better future, and are socially, economically, and geographically isolated. They are also dependent on the erratic supply of wage labor. They typically have food insecurity and eat fewer than two meals every day. Malnutrition makes illnesses worse, which further depletes resources and necessitates borrowing from predatory lenders. Many of the large-scale government livelihood programs and safety net programs that are aimed at the poor do not reach the most vulnerable and extremely poor people. Additionally, market-based solutions are frequently inaccessible to them. 100 to 150 million households in India are thought to live on less than US$1.90 per day. The COVID-19 pandemic is likely to have increased these households’ vulnerabilities or increased the number of people living in ultra-poverty.